A typical large business (generally referred to herein as the “buyer” or “buying organization”) may have numerous suppliers who collectively render many invoices for goods and services supplied to the purchasing business. The terms and conditions for the business's dealings with its suppliers, including payment terms, may vary from supplier to supplier. The buyer, thus, is faced with the complex issue of sorting through a large number of invoices, each possibly having a number of payment terms.
There are also a number of different methods of payment that a buyer may potentially use to pay each supplier in settlement of the invoices rendered to the business. For example, payment by paper check, mailed to the supplier, is one long-standing payment method.
Other available payment methods may include Automatic Clearing House (ACH) transactions, payment cards such as debit or credit cards issued by a national payment card association or the like, Electronic Data Interchange (EDI), and so-called “private networks” which allow for direct transfer of data between companies by a network such as the Internet. The variety of different payment methods make the already complex issue of sorting through invoices even more complex, as the buyer must not only process a large number of invoices having a variety of payment terms, but must also determine the appropriate payment method for each of the invoices.
The various payment methods that may be available may have different respective advantages and costs, which may vary from transaction to transaction. For example, in some situations, the most desirable payment method for an invoice (or invoice item) may be an ACH transaction, while another invoice (or invoice item) may be best suited for payment using a credit card. Existing payment systems do not provide a systematic approach for a buyer to analyze individual invoices to determine the appropriate terms and conditions as well as to determine the most desirable payment method.